Customer Perception Towards Online Banking Services: Empirical Evidence from Pakistan

Abstract

The Promotion of online banking technology enabled the banks to enhance its operations with cost cutting effectively and efficiently in order to handle daily banking affairs via online banking channel. Customers are being facilitated by reducing their visits in banks and they can carryout their transactions via internet or ATM Machines instead of personally visiting the branches. The researches so far done reveal that mostly the customer of banks are unaware about online banking services and there is a lack of trust among customers on online banking services. Especially Pakistan is far behind the developing countries as a lot of services regarding online banking are not available in Pakistan. This study examines the customer perception, preferences, problems and suggestions about online banking in Pakistan. The study reveals that mostly customers prefer internet banking (IB) services over branch banking due to reliability, convenience, speed, safety and security, cost effectiveness, user-friendly, and error free system. In contrast the parallel finding shows that security problems, lack of trust and knowledge, ATM machine problems etc. affect the adoption decision of customers of internet banking services. The services which are not in Pakistan e.g. Cash depositing facility through ATM machines, “SMS/E-mail Alert” Service, Transfer funds through ATM machines, Payment of utility bills through internet are found most required / demanding services by the customers in this study. This study will helps the banks that how they can improve the level of online banking services in Pakistan and what are the potential issues or services that should be introduced in society to facilitate the customer in a better way and to compete their rivals in banking industry as a whole.

Keywords: Internet Banking, Customers’ perception, Quality, Satisfaction, Commercial Banks, Pakistan